June 25, 2010
COURT APPROVES LIFEPOINT HOSPITALS' PURCHASE OF
SUMNER REGIONAL
HEALTH SYSTEMS
Hospital system cleared to purchase Sumner
Regional out
of bankruptcy for $145 million
LifePoint Hospitals, Inc. (NASDAQ: LPNT), a leading hospital company focused on providing quality healthcare services close to home, and Sumner Regional Health Systems (HighPoint Health System), a comprehensive three-market hospital system serving 11 counties in the northern middle Tennessee region, today announced that LifePoint’s purchase of HighPoint Health System for $145 million plus working capital was approved by the United States Bankruptcy Court for the Middle District of Tennessee. The court approval follows HighPoint Health System filing for Chapter 11 bankruptcy protection on April 30, 2010, and undergoing a court approved bidding and sale process.
The closing of the transaction remains subject to the approval of the Attorney General and satisfaction of customary closing conditions.
“LifePoint strives to find partners that share our commitment to making communities healthier,” said LifePoint President and Chief Executive Officer William F. Carpenter III. “With talented medical staff and employees who are tremendously dedicated to their patients and community, Sumner Regional Health Systems is an ideal match for us. We are delighted to welcome the system to our family of hospitals and are particularly excited to expand our presence in Tennessee.”
Under the terms of the sales agreement, LifePoint will make $60 million in capital investments in HighPoint Health System over the next ten years. Additionally, LifePoint will provide charity care to residents of the communities served by HighPoint Health System.
Carpenter added, “LifePoint is committed to doing all we can to ensure the health and well being of the communities served by HighPoint Health System, and we look forward to collaborating with representatives of Sumner County to see how we can meet the unique needs of residents.”
Based in Gallatin, Tenn., HighPoint Health System is comprised of Sumner Regional Medical Center, the 155-bed flagship hospital located in Gallatin; Riverview Regional Medical Center, an 88-bed medical center with two campuses located in Carthage; and Trousdale Medical Center, a 25-bed critical access hospital in Hartsville.
“We have worked diligently to enable HighPoint Health System to achieve its goal of becoming a viable, sustainable, high-quality health system for the long-term, and we are confident that HighPoint Health System will achieve that goal as part of LifePoint Hospitals,” said Roger E. Kaiser, Jr., M.D., CEO of HighPoint Health System.
“LifePoint shares the same values and focus on improving the health of our communities that is the foundation of our health system, and as part of their company, our hospitals will be better positioned to care for the communities we serve into the future.”
HighPoint Health System has been operating as a tax-exempt entity. Because LifePoint is a tax-paying organization, the communities served by HighPoint Health System will benefit from significant new revenues generated from both city and county taxes.
LifePoint operates 48 additional healthcare facilities across the nation, including six in Tennessee. LifePoint’s affiliated hospitals in Tennessee include Athens Regional Medical Center in Athens, Crockett Hospital in Lawrenceburg, Livingston Regional Hospital in Livingston, Hillside Hospital in Pulaski, Emerald-Hodgson Hospital (a campus of Southern Tennessee Medical Center) in Sewanee, and Southern Tennessee Medical Center in Winchester.
About LifePoint Hospitals
LifePoint Hospitals, Inc. is a leading hospital company focused on providing quality healthcare services close to home. Through its subsidiaries, LifePoint operates 48 hospital campuses in 17 states. With a mission of “Making Communities Healthier®,” LifePoint is the sole community hospital provider in the majority of the communities it serves. More information about the Company, which is headquartered in Brentwood, Tennessee, can be found on its website, www.LifePointHospitals.com. All references to “LifePoint,” "LifePoint Hospitals," or the “Company” used in this release refer to LifePoint Hospitals, Inc. or its affiliates.
About Sumner Regional Health Systems, Inc.
Sumner Regional Health Systems, Inc., (HighPoint Health System) is a healthcare organization serving eleven counties in the northern middle Tennessee region. The system provides a wide spectrum of general and specialized healthcare services through its four community hospitals and multiple affiliates. Learn more about HighPoint Health System at www.sumnerregional.org.
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Marketing and Public Relations
555 Hartsville Pike
Gallatin, TN 37066
(615) 328-5031
Diane Huggins
LifePoint Hospitals, Inc.
(615)476-2667
Rachel Lassiter
Sumner Regional Health Systems
(615)328-5165